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# What is Garantex? Russia’s Biggest Crypto Platform Under Restrictions
The European Union has aimed sanctions at Garantex, the most significant Russian digital currency platform facing restrictions, despite the fact that experts highlight that this platform has been functioning effectively under limitations for a considerable duration already.
On Monday, February 24th, the European Council presented its 16th set of penalties, incorporating the Russian crypto platform Garantex onto the roster because of its “intimate connections with Russian banks that are already under EU penalties.”
Garantex seems to represent one of the biggest Russian digital currency platforms functioning under the Kremlin’s sway. Based on its site, the platform possesses an office within the Federation Tower skyscraper located in Moscow and provides cash ruble depositing and withdrawing services, which can be utilized with Russian bank cards, including those from Sberbank, Tinkoff, and Alfa-Bank.
The EU’s penalties directed at Garantex occur two years after the platform was initially put on a blacklist by the U.S. Treasury Department’s Office of Foreign Assets Control in 2022.
## “No Major Effect”
Established in late 2019 by Russian tech specialist Stanislav Druzgaliev and former KGB officer Sergei Mendeleev, originally situated in Estonia, the platform has for a long time encountered examination regarding its function in enabling unlawful dealings.
According to information originating from American blockchain intelligence company Chainalysis, the platform has aided in handling payments associated with ransomware groups and dark web markets, notably the notorious Hydra Market, which was terminated in April 2022. Numerous sources additionally suggest that Garantex has been employed by various illicit and terrorist groups, including Hezbollah.
Andrew Fierman, chief of national security intelligence at Chainalysis, mentioned in a conversation with crypto.news that Garantex has continued to be operational “for years following being sanctioned by the U.S. and the UK.” Toncoin (TON) Value Forecast for March 26th
> “The EU’s action, while increasing the compliance responsibility for EU organizations, is improbable to produce a major effect on Garantex’s general operations. Nevertheless, it symbolizes the EU’s position.
Garantexs standing is founded on its strong presence in Russia and purported links to the Russian government. An investigation in March 2024 indicated that Garantexs associates have relationships with the Russian administration, sparking worries about its autonomy.
Garantex asserts it collaborates with global policing agencies to stop unlawful conduct. Nevertheless, the American financial ministry penalized it in April of 2022, emphasizing its part in enabling unlawful dealings.
George Voloshin, a monetary offense expert from the Anti-Money Laundering Specialists Association, opines that Garantex functions akin to an unofficial funds transmission system, a “hawala” structure, circumventing standard monetary rules and supervision. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
Isabella Chase, the head of UK and EU policy at TRM Labs, a blockchain investigation company, remarked that even with American penalties in 2022, Garantex still handles “billions of dollars in operations each year, permitting penalized organizations and digital offenders to cleanse illegal finances with minimal monitoring.”
Information from TRM Labs indicates that more than 85% of capital moving into penalized bodies and regions comes from Garantex and Nobitex, an Iranian digital currency market.
“The European Union penalties against Garantex are intended to additionally limit its capacity to function globally and complicate the process of washing illegal capital. However, implementation is crucial; lacking robust global collaboration, digital offenders might move their actions to other non-conforming markets or decentralized systems. Garantex isn’t the sole choice for malicious individuals.”
TRM Labs has recognized the market as a significant enabler, yet points out that other clandestine banking webs, person-to-person platforms, and decentralized financial services “stay as substitute routes for offenders to transfer capital.
Hey everyone, financial experts are raising concerns! They indicate that Garantex, a digital currency platform allegedly controlled by the Russian government, poses a significant danger. This threat extends beyond the realm of virtual currencies, impacting international stability. Essentially, they suspect the Russian government is utilizing Garantex for illicit activities that could potentially disrupt global affairs.
